Iranian joint venture SAVOLA BEHSHAHR COMPANY integrates BEHSHAHR INDUSTRIAL DEVELOPMENT COMPANY's edible oil production and sales experience in Iran with SAVOLA EDIBLE OILS' international marketing expertise and leading regional brands.
SAVOLA EDIBLE OILS COMPANY ("SEO") of Saudi Arabia has announced that it has acquired a 49% equity share in an Iranian joint venture entity, SAVOLA BEHSHAHR COMPANY ("SBC"), from BEHSHAHR INDUSTRIAL DEVELOPMENT COMPANY ("BID") on July 8th, 2004. The consideration to be paid by SEO amount to 664,1 billion Iranian Rials or approximately 76.8 million USD at the current exchange rate in what is believed to be the largest such international deal in Iran in a non-governmental economic field in the recent past.
SBC is the majority shareholder of the two largest manufacturers of edible oil in Iran, with astake of 81.2% in BEHSHAHR INDUSTRIAL COMPANY ("BIC") and 53.1% in MARGARINE MANUFACTURING COMPANY ("Margarine").
Together the companies commanded a 40% market share in Iran with revenues in excess of USD 300 million in 2003. Their brands include "Ladan", "Nastaran", "Bahar", "Khorous" and "Aftab". Both companies are listed on the Tehran Stock Exchange. This acquisition expands SEO's geographical reach to Iran after successfully entering Egypt, Jordan, Morocco and Sudan. SEO plans to leverage its brands and marketing knowledge to further increase BIC and Margarine's market share in Iran and their exports to the former Soviet Union Republics.
SEO's President and CEO, Dr. Abdulraouf Mannaa, said: "The SBC joint venture in Iran, our successful entries in Egypt, Jordan, Morocco and Sudan, as well as other current projects in a number of countries, are key components of our strategy to expand outside our historic market in the Kingdom of Saudi Arabia. This will allow us to leverage our internationally famous brands, our marketing savvy and our focus on consumers' satisfaction, competencies
that have helped us achieve and maintain a 70% market share in Saudi."
SEO was advised by SWICORP, a Swiss-headquartered investment banking firm active throughout the Middle East and North Africa (MENA).
-Ends-
About SAVOLA EDIBLE OILS COMPANY
Savola Edible Oils ("SEO") is a Saudi limited liability company owned 90% by the Savola Group, a diversified publicly-listed holding company in Saudi Arabia with consolidated sales of SAR 4.2 billion in or (approximately USD 1.1 billion). SEO is active in the refining, marketing and distribution of edible oil products with production facilities in Saudi Arabia, Egypt, Jordan, Morocco and Sudan. Today, SEO competes on a global level in manufacturing, marketing, and distributing more than 60 different types of products including corn oils, sunflower oils, palm oil, blended oils and ghee in more than 20 countries. Its most famous brands include "Al Arabi", "Afia", "Olite" and "Shams" and SEO's extensive expertise in marketing, branding and distribution has led it to successfully capture and maintain high market shares in Saudi Arabia, Egypt, and Jordan.
About BEHSHAHR INDUSTRIAL DEVELOPMENT COMPANY
BEHSHAHR INDUSTRIAL DEVELOPMENT COMPANY ("BID") is an Iranian diversified holding company publicly-listed on the Tehran Stock Exchange with consolidated sales of IRR 4.2 trillion (approximately USD 481 million) for the year ended on March 20th 2003. It is active in edible oils, detergents, sugar, packaging, warehousing, distribution, banking, lead and tin, trading, both through privately owned companies and majority stakes in publicly-listed
companies.
About Swicorp Financial Advisory Services S.A.
SWICORP (www.swicorp.com) is an independent investment banking firm which provides a comprehensive range of financial advisory services to domestic and international businesses active in the Middle East and North Africa (MENA). Founded in Switzerland in 1987 and with existing regional offices in Saudi Arabia, Algeria, Egypt and Tunisia. SWICORP's activities comprise: Mergers & Acquisitions; Joint Ventures and Strategic Alliances; Debt and Equity Capital raising; Privatisation in Emerging Markets; Financial Engineering and Restructuring; and Private Equity.
Swicorp Financial Advisory Services SA
Mr. Daniel Schenker,
Executive Partner
dschenker@swicorp.com
Mr. Shahram Sabeti,
Vice-President
asabeti@swicorp.com
(t) +41 22 737 37 37
(f) +41 22 737 37 00
8, Quai Gustave-Ador
P.O. Box 6404
CH-1211 Geneva 6
Switzerland
www.swicorp.com
© Press Release 2004
